Carmela S. Perez, DBAAssistant Commissioner,

Government Accountancy and Financial Management Information System

Commission on Audit

Implementing the Computerized Government Accounting System: Philippine Experience

Outline:

Constitutional Mandate

Objectives

Milestones

eNGAS Environment / Technical Features

Beneficiaries

eNGAS Definition

Government Accounting System Simplification and Computerization (New Government Accounting System (NGAS) and Electronic NGAS (eNGAS))

Basic Features

Financial Statements Generated

Financial Reports Generated

Conceptual Framework

Rollout Status

Rollout Strategies

Outline:

Lessons Learned from the Rollout

Agency - Level Integrated Financial Management Information System (IFMIS)

Inter-agency IFMIS

Outline:

Next Steps

What They Say About eNGAS

• Components

• Description

• Objectives

• Features

• Benefits

• Conceptual Framework

eAudit

Constitutional Mandate

“The Commission on Audit shall have exclusive authority, subject to limitations, to define the scope of its audit examination, establish the techniques and methods required therefore and promulgate accounting and auditing rules and regulations, including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties.” (Article IX-D, Section 2 Par. (2) of the 1987 Constitution of the Republic of the Philippines)

Government Accounting System Simplification and Computerization (NGAS and eNGAS)

Chairman Guillermo N. Carague assumed office in February 2, 2001

Design and development of the New Government Accounting System (NGAS)

NGAS Steering Committee

COA Chairman 3 Assistant Commissioners 2 Directors

Design and development of the Electronic New Government Accounting System (eNGAS)

(Source: COA News)

(Source: COA News)

Objectives

Standardize recording of government financial transactions

Consolidate Financial Reports for National Government Agencies (NGAs), Local Government Units (LGUs) and Government Owned & Controlled Corporations (GOCCs)

Align the Accounting System with International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS)

Improve accountability and governance through transparency in governmental financial management

Milestones

NGAS designed and developed in June – October 2001

NGAS launched in Nov. 14, 2001

Nationwide training conducted in Nov. & December 2001

NGAS implemented in NGAs and LGUs in January 2002

Piloted in COA in April – September 2003

Milestones…

Started roll-out of eNGAS in three NGAs and two LGUs in October 2003

Implemented in GOCCs starting January 2005

On-going - 33 NGAs, 15 Regional Offices of COA, 10 LGUs and 1 GOCC

eNGAS Definition

New Government Accounting System (NGAS) software

Correct, reliable and timely recording of government financial transactions

Financial reports in accordance with NGAS

eNGAS Environment / Technical Features

Runs on Microsoft SQL Server

Multi-user operations

Alpha search and look up system codes and transactions

Online data entry and validation

Online query and reporting facility

Audit trail for system users

Automatic recovery from hardware and system failures

Beneficiaries

Agency management

Agency accounting personnel

Oversight and regulatory agencies

General public

Government executives and legislative officials

Basic Features: User friendly screens

Basic Features:

Accounting journal entry templates for common transactions

Basic Features: Balanced debit and credit for accounting journal entries

Data validationBasic Features:

Basic Features: Electronic approval and posting of transactions to General Ledger and Subsidiary Ledger

Basic Features: Uses only the General Journal

Basic Features:Standard Chart of Accounts

Basic Features:

Responsibility Accounting

RESPONSIBILITY CENTER CODINGSTRUCTURE - COA

11 304 01 06 01 755

OfficeSuppliesExpense

Office of theAsst. Comm.

NationalGovernment Sector

Central Office

Commission on Audit

RA Books - General Fund

Basic Features:

Automatic computation of inventory cost using weighted (moving) average method

Basic Features:

Information on re-order level and number of days to consume inventory

Basic Features:

Property, Plant and Equipment Monitoring

Maintenance Expenses

• Amount

• Accumulated Amount

Basic Features:

Automatic Computation of depreciation using Straight – Line Method

Subsidiary Ledger Maintenance

Basic Features:

Account Title: Performance/Bidders/Bail Bonds Payable Account Code: 427

2003

Jan. 31 Receipt of Bidders Bond CRJ 7,500 7,500

Feb. 28 Receipt of Performance Bond CRJ 100,000 107,500

June 30 Refund of Bidders Bond CkDJ 7,500 100,000

AO 5-14-02

GENERAL LEDGER

Date Particulars Ref.Amount

Debit Credit Balance

Province of Bulacan

GL Account Title : GL Account Code :

Name of Creditor: SL Code:

Contact Person: Jo Castro

150 ABC Bldg., EDSA , Q.C.

2003

Jan. 31 Bidder's bond for the purchase of office supplies

with estimated cost of P160,000 RCD No. 2003-01-001 7,500 7,500

June 30 Refund of bidders' bond RCI No. 2003-06-025 7,500 -

SUBSIDIARY LEDGER

Province of Bulacan

Performance/Bidders/Bail Bonds Payable 427

EFG Merchandising

Position: Store Manager Telephone No.: 927-33-46

Date Particulars Ref.Amount

Debit Credit Balance

GL Account Title : GL Account Code :

Name of Creditor: SL Code:

Contact Person: Alex M. Lopez

RDC Bldg. Sta. Cruz, Manila

2003

Feb. 28 Bond for the construction of slaughter house

with total contract price of P1 million RCD No. 2003-01-002 100,000 100,000

SUBSIDIARY LEDGER

Agency

Performance/Bidders/Bail Bonds Payable 427

E.C. Cruz Construction

Position: Manager Telephone No.: 931-2991

Date Particulars Ref.Amount

Debit Credit Balance

GENERAL LEDGERACCOUNT

SUBSIDIARY LEDGER ACCOUNT

Project AccountingBasic Features:

Direct Materials

Direct Labor

Consultancy

Overhead

MONITORING OF EXPENSES INCURRED IN THE CONSTRUCTION OF GOVERNMENT PROPERTIES

Basic Features:

Public Infrastructure / Reforestation Projects Monitoring

Online Query Feature (with option to print):

Journal Entry Voucher

Expense per Responsibility Center

Income per Responsibility Center

Summary of Income

Summary of Expense

Repair History of PPE

Stocks Available

Online Query Feature (with option to print):

Stocks Due for Reorder / Reorder Point

Schedule / Aging of Receivable Accounts

Schedule / Aging of Payable Accounts

Inventory Schedule

Property, Plant and Equipment Schedule

Schedule of Account Balances

Recorded Supporting Documents

Online Query Feature (with option to print):

Schedule / Aging of Receivable Accounts

Online Query Feature (with option to print):

Schedule / Aging of Payable Accounts

Financial Statements Generated

Statement of Income and Expenses (Condensed and

Detailed)

Balance Sheet (Condensed and Detailed)

Statement of Cash Flows

Statement of Government Equity

Consolidated Statement of Income and Expenses

(Condensed and Detailed)

Consolidated Balance Sheet (Condensed and Detailed)

Consolidated Balance Sheet - CondensedFinancial Statements Generated

Consolidated Statement of Income and Expenses - Detailed

Financial Statements Generated

Financial Reports Generated

General Journal

General Ledger

Subsidiary Ledger

Supplies Ledger Card

Property, Plant and Equipment Ledger Card

Construction in Progress Ledger Card

Trial Balance (Unadjusted, Pre-Closing and Post-Closing)

Consolidated Trial Balance (Merged and Unmerged)

Financial Report Generated

General Journal

Financial Report Generated

General Ledger

e-NGAS Conceptual Framework

JEVPreparation

JEV ReviewAnd Approval

Query

ReportGeneration

Accounting System

e-NGAS

Reference

Document

Source

Document

Selects type of transaction and fund

Selects template / accounting entries

JEV

Edit particulars of the template and enters reference

document #

Validates / Saves JEV

e-NGAS database

Generates JEV

Journal Entry Voucher (JEV) Preparation

Home

Receives valid document

Reference

Document

Source

Document

Retrieves JEV REVIEW AND APPROVAL INBOX

Selects type of transaction / fund

YES

Approves / Posts JEV to GL and SL

Validates / Reviews JEV

Approved JEV

Journal Entry Voucher (JEV) Review and Approval

Generates approved JEV

e-NGAS database

NO

Edits / Saves JEV

Valid JEV ?

Home

Selects Query criteria

e-NGAS database

Identifies item in the Query list

Views / Prints result of Query

Query

Home

Opens Menu for Query

Stocks Availability

Due for Reorder

Journal Entry Voucher

Expense per Responsibi-lity Center

Schedule of Receivable Accounts

Schedule of Payable Accounts

Repair History of PPE

Income per Responsibi-lity Center

Summary of Expense

Summary of Income Report of

IncomeRecorded Supporting Documents

Selects report to be generated

e-NGAS database

Views / Prints Reports

Trial Balance

Statement of Income and Expense

Balance Sheet

Statement of Cash Flows

Statement of Government Equity

Financial Reports

Property, Plant and Equipment Ledger Card

Construct-ion-in Progress Ledger Card

General Journal

General Ledger

Subsidiary Ledger

Supplies Ledger Card

Journal / Ledger

Report Generation

Opens Menu for reports

NGAs

Rollout Status

1 – 3 months completed

Bureau of the Treasury Department of Budget and Management Energy Regulatory Commission Philippine Carabao Center – 2 months Housing & Urban Devt and Coordinating Council PCASTRD – DOST Philippine Air Force Presidential Management Staff Environmental Management Bureau National Water Resources Board

Central Luzon State University Department of Agrarian Reform Department of Health Department of Public Works and Highways Department of Trade and Industry Philippine Veterans Affairs Office Metropolitan Manila Development Authority Telecommunications Office

NGAs

Rollout Status

4 – 6 months completed

Civil Service Commission Department of Social Welfare and Development Office of the President Department of Education

NGAsRollout Status

7 – 12 months completed

Board of Investments Bureau of fisheries and Aquatic Resources Bureau of Internal Revenue Department of Environment and Natural Resources Department of Finance Department of National Defense Department of Science and Technology Pasig River Rehabilitation Commission Professional Regulation Commission Technical Education and Skills Development Authority Council for the Welfare of Children

NGAsRollout Status

Ongoing Implementation

Benguet Province – 3 ½ months Guiguinto, Bulacan – 3 months Marikina City* Muntinlupa City* Quezon City* Victorias City* Cauayan City* Davao City* Bakun, Benguet* Itogon, Benguet*

LGUs

Rollout Status

Legend:

* -- On-going implementation

GOCCs Manila International Airport Authority*

Rollout Strategies

Provide eNGAS trainers for agencies

Mobilize COA Regional Offices and Auditors to support the nationwide roll out

Provide COA rollout teams to assist agencies

Provide individual consultants to agencies on an on call basis

Collaborate with umbrella organizations of government agencies

• League of Local Government Executives

• Phil. Association of State Universities and Colleges

• Professional Organizations – GACPA, PAGBA, AGAP, etc.

• Phil. League of Budget Officers

Cooperative grouping of LGUs

Empower the agencies by allowing them (NGAs Central Offices) to roll out in their regional offices and attached agencies

Lessons Learned from the Rollout

Politics within the agency is crucial

Determination of management and users to finish the rollout in time

Success Factors

Rapport with agency ICT group is important

Systematic response mechanism to user problems and issues

Strategies should be devised from time to time to cover more rollout sites Opportunity for COA personnel to work as teams

Readiness of agency in terms of Hardware / Software etc.

Agency - Level Integrated Financial Management Information System (IFMIS)

Related Operating Systems or ROS is a collection of web-enabled application software designed to support a full

Financial Management Information System. It consists of four modules:

Cash Disbursements Operations

Cash Receipt Operations

Non-Cash Operations

Payroll and Personnel Information System

Next Steps

Agency – Level IFMIS

consists of modules which can be implemented independently

capable of establishing linkages between modules.

covers form preparation, transaction processing, and generation of queries and required reports

modules can be linked to e-NGAS and the Budget System

automated access of transaction details for the preparation of Journal Entry Vouchers and Obligation Slips

capable of changing configuration to adapt to NGAs, LGUs, and GOCCs needs

Next Steps

Description:

Objectives:Agency - Level IFMIS

Next Steps

implement common processes for similar transactions

provide complete audit trail to facilitate audits

provide adequate management reporting

standardize data classification for recording transactions

eliminate unnecessary duplication of transaction entry

support government-wide and agency policy decisions

collect accurate, timely, complete, reliable, consistent information

apply internal controls over data entry, transaction processing, and reporting

Records are protected from unauthorized access through appropriate administrative, physical, and technical safeguards.

Features: Agency - Level IFMIS

Next Steps

Simplified entry of transactions and activities

User-friendly interface

Ability to capture manually prepared transactions.

Ability to export transaction data directly to specified data format

Some forms (i.e. Disbursement Voucher, Liquidation Report) can be prepared and sent by concerned employees through the web.

Queries and Reports can be viewed (with option to print) through the World Wide Web (www).

Reporting Features:

Up-to-date generation of government standard required reports necessary for management and auditing purposes.

Use of a Reporting Module that allows customization of ad- hoc reports including headers and footers, column and row totals, page breaks, font styles, sizes and colors.

Performs currency conversion.

Some reports can be viewed in graphical formats.

Runtime, dates, terminal source, and user name are included in all reports.

Agency - Level IFMIS

Next Steps

establishes its presence

heightens public interest

makes government financial information available online

answers frequently asked questions

makes changing information available quickly

allows feedback from users

Benefits of Web-based IFMIS

Agency - Level IFMIS

Next Steps

Conceptual Framework

Agency - Level IFMIS

Next Steps

RELATED OPERATING SYSTEMS

Cashiering Office

Other Agency Users

Property Management Office

Accounting Office

Enters TransactionDetails

<<system>>Cash

Receipts

<<system>>Cash

Disbursements

<<system>>Non-Cash

<<system>>Payroll

Related Operating Systems

Provides transactiondetails for JEV Preparation

Answers Queries andGenerates Reports

Provides data forother systems

<<system>>e-NGAS

<<system>>Budget System

<<system>>Other Systems of

the Agency

Agency Users Non-Agency Users

<<system>>Personnel Information

Inter - agency IFMIS

Next Steps

Integrated IFMIS linking the following agencies

Department of Budget and Management (DBM)

Department of Finance (DOF)

Bureau of the Treasury (Btr)

Commission on Audit (COA) / Accounting Office

Bangko Sentral ng Pilipinas (BSP)

Other related agencies

Harmonization Project

- eBudget

eAudit

Audit Software to match eNGAS installed

in agencies

Standardize audit working papers

Risk – Based Financial Audit Manual

Use of existing Audit Softwares – TEAMate,

Idea, Paradox

Next Steps

What Users / People say about eNGASVideo Clip